Which of the following statements explains when a natural monopoly occurs?
A) Diseconomies of scale occur as ATC decreases over a wide range of output.
B) A monopoly owns or controls a resource necessary to produce the product.
C) Economies of scale occur as ATC decreases over a wide range of output.
D) Economies of scale are obtained from constant costs over a wide range of output.
Ans: C) Economies of scale occur as ATC decreases over a wide range of output.
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